Webster Financial Corporation Declares Quarterly Dividend of $0.40 (NYSE:WBS)

Key Points

• Webster Financial declared a quarterly dividend of $0.40 per share (annualized $1.60), with the record/ex-dividend date on Monday, May 11 and payment scheduled for May 21, implying a yield of about 2.2%.
• The company reported quarterly EPS of $1.57, beating estimates of $1.53, and revenue of $1.37 billion (up 4.4% year-over-year); with a payout ratio of about 24.6%, analysts expect the dividend to remain well-covered.

Webster Financial Corporation (NYSE:WBS - Get Free Report) declared a quarterly dividend on Wednesday, April 29th. Stockholders of record on Monday, May 11th will be paid a dividend of 0.40 per share by the financial services provider on Thursday, May 21st. This represents a c) dividend on an annualized basis and a dividend yield of 2.2%. The ex-dividend date is Monday, May 11th.

Webster Financial has a payout ratio of 24.6% indicating that its dividend is sufficiently covered by earnings. Equities research analysts expect Webster Financial to earn $7.35 per share next year, which means the company should continue to be able to cover its $1.60 annual dividend with an expected future payout ratio of 21.8%.

Webster Financial Price Performance

Shares of WBS opened at $71.99 on Thursday. The company has a debt-to-equity ratio of 0.40, a quick ratio of 0.86 and a current ratio of 0.86. The firm has a market cap of $11.66 billion, a PE ratio of 12.16 and a beta of 1.03. The business's 50 day moving average price is $70.54 and its two-hundred day moving average price is $65.25. Webster Financial has a 52-week low of $45.94 and a 52-week high of $74.00.

Webster Financial (NYSE:WBS - Get Free Report) last issued its earnings results on Tuesday, April 28th. The financial services provider reported $1.57 EPS for the quarter, beating the consensus estimate of $1.53 by $0.04. Webster Financial had a return on equity of 11.10% and a net margin of 22.67%.The company had revenue of $1.37 billion during the quarter, compared to the consensus estimate of $749.96 million. During the same period last year, the business posted $1.30 EPS. The firm's revenue for the quarter was up 4.4% compared to the same quarter last year. On average, equities analysts anticipate that Webster Financial will post 6.61 EPS for the current year.

Institutional Investors Weigh In On Webster Financial

Large investors have recently added to or reduced their stakes in the company. Grove Bank & Trust boosted its stake in Webster Financial by 18.7% in the fourth quarter. Grove Bank & Trust now owns 1,005 shares of the financial services provider's stock worth $63,000 after buying an additional 158 shares in the last quarter. Farther Finance Advisors LLC increased its stake in Webster Financial by 39.7% in the 4th quarter. Farther Finance Advisors LLC now owns 560 shares of the financial services provider's stock worth $35,000 after purchasing an additional 159 shares during the period. Curi Capital LLC increased its stake in shares of Webster Financial by 0.3% in the second quarter. Curi Capital LLC now owns 68,500 shares of the financial services provider's stock worth $3,740,000 after buying an additional 182 shares during the period. Brown Brothers Harriman & Co. grew its holdings in Webster Financial by 27.9% in the 3rd quarter. Brown Brothers Harriman & Co. now owns 839 shares of the financial services provider's stock worth $50,000 after acquiring an additional 183 shares during the last quarter. Finally, Caitong International Asset Management Co. Ltd increased its holdings in Webster Financial by 37.8% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 674 shares of the financial services provider's stock valued at $42,000 after purchasing an additional 185 shares during the period. Hedge funds and other institutional investors own 85.58% of the company's stock.

About Webster Financial

Webster Financial Corporation is a bank holding company headquartered in Waterbury, Connecticut. Through its principal subsidiary, Webster Bank, N.A., the company offers a broad range of banking products and financial services to individuals, small businesses, and middle-market commercial clients. Key offerings include deposit accounts, residential and commercial real estate lending, equipment finance, treasury management, and payment processing solutions.

In addition to traditional banking services, Webster Financial provides wealth management and insurance products designed to help clients plan for retirement, preserve assets, and manage risk.

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